FG raises loan for small businesses to N5m at single digit
The Federal Government has raised the amount of funds small businesses can access under single digit interest rate to a maximum of N5 million.
This is part of the government’s effort to foster inclusive economic growth.
The Managing Director and Chief Executive Officer, Bank of Industry (BOI), Dr Olasupo Olusi, who disclosed this in Lagos during a town hall sensitisation on the Federal Government Grant and Loan Scheme said that the government is committed to supporting the growth of Micro, Small, and Medium Enterprises (MSMEs).
Olusi, who was represented by Executive Director, MSMEs, BoI, Umar Shekarau, commended President Bola Tinubu for the N200 billion Presidential Intervention Fund for Micro, Small, and Medium Enterprises (MSMEs), with N75 billion set aside specifically for MSMEs.
He said N75 billion out of the presidential conditional grant and loan scheme was targeted for MSMEs, adding that the initiative was expected to create thousands of direct and indirect jobs nationwide.
He stated that the fund, facilitated through the Bank of Industry (BOI) nationwide, is ready for disbursement to beneficiaries at an annual interest rate of nine per cent.
Urging business owners to approach the BoI directly for loan or register online, without going through intermediaries, he said over 800,000 Nigerians have benefited from the loan and there is room for including youths, women, physically challenged and all Nigerians.
Senior Special Assistant to the President on Job Creation and MSMEs, Temitola Adekunle-Johnson, said that the increase in loan size—from the previous N1 million to N5 million—aimed to address the financial and infrastructural challenges confronting small and medium scale businesses across the country
He said “The loan is nine per cent three years tenure. A single MSME can collect up to N5 million single digit.
“This scheme is expected to create thousands of direct and indirect jobs nationwide.”
The initiative was part of a broader federal strategy, was developed in collaboration with the Ministry of Finance, the Ministry of Industry, Trade and Investment, the Presidency, and other stakeholders.
Also speaking the Minister of Finance, Mr Wale Edun, who was represented by Ahmed Gazalli, highlighted the importance of MSMEs to the national economy. He described the programme as a step in Nigeria’s drive towards achieving economic empowerment and sustainable growth.
According to him
“MSMEs form the backbone of our economy. Supporting their growth is essential for achieving our vision of an inclusive, thriving economy.”
He reiterated the government’s resolve to remove barriers hindering MSME expansion while strengthening the manufacturing sector to reposition Nigeria’s economic landscape.
Minister of State for Industry, Trade and Investment, Senator John Eno, said that the current government is eager to support programmes and initiatives that promote the welfare of Nigerians, especially small-scale businesses.
Eno pledged the government’s commitment to help all the agencies to deliver on their mandates, adding that collaboration would help to remove barriers from growth of MSMEs.
